In this article we present the list of Top 10 Growth Stocks in David Tepper’s Portfolio.
Buy “everything” related to China has been David Tepper’s investment theme despite the uncertainties about the economy amid a trade spat with the US. The president and founder of Appaloosa Management LP believes China’s economy is well-positioned to bounce back from the COVID-19-triggered slowdown.
“Everything. ETFs, I would do futures — everything. Everything,” Tepper said during an interview on CNBC when asked about which Chinese equities.
Consequently, Appaloosa Management LP’s portfolio has built significant exposure to Chinese equities, with the biggest holding offering exposure to the country’s internet landscape. The investment strategy is increasingly paying off as Chinese stocks have enjoyed a bull run in response to Beijing unveiling a sweep of measures aimed at boosting economic growth.
READ ALSO: Billionaire Ken Fisher’s Top 13 Growth Stock Picks and Top 10 Blue Chip AI Stocks to Buy According to Billionaire Cliff Asness.
With 5.4% growth in the fourth quarter of 2024, China’s economy exceeded expectations thanks to Beijing’s stimulus policies, which included interest rate reductions. Investors are awaiting information on further fiscal assistance for the struggling real estate sector and consumer demand.
Increased focus on Chinese equities affirms Tepper’s philosophy, which often revolves around contrarian views on the market. His focus on Chinese equities comes amid growing concerns that they would be hit hard as the US imposes significant trade tariffs on China in a bid to trim the trade deficit between the two economic powerhouses.
Amid the concerns, the founder of Appaloosa Management LP insists on the need to deploy significant risk management to offset the impacts of the ongoing trade war. Similarly, Tepper has already emphasized the need to stay invested in bull markets, which appear and remain calm during market downturns, as the one in play in the US.
US equities have been under immense pressure in the first quarter of 2025, which is attributed to uncertainties about US trade wars and the reluctance of the US Federal Reserve to cut interest rates. The S&P 500 has already shed nearly 3% in value and is on course to record its first quarterly decline since July of 2023.
The selloff in the US equity markets also comes at the backdrop of disappointing financial results from some companies that have been reported. Market participants have also not been impressed by the guidance that signals potential weakness across the board amid deteriorating macroeconomics.
“You know there’s this negative bias out there. You just don’t know to what degree,” said Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut.
Analysts are becoming increasingly wary regarding US corporate profits for the first quarter of this year, as policies from the Trump administration pose a risk of igniting a global trade conflict that could hinder economic expansion. Predictions for the S&P 500’s performance in the first quarter of 2025 have decreased by 4.5 percentage points, marking the most significant downward adjustment since the last quarter of 2023, according to his remarks.
Earnings growth for S&P 500 firms is now projected to be 7.7% compared to the previous year, which would represent the lowest rate since the third quarter of 2023 and a substantial drop from 17.1% in the final quarter of 2024, according to data from LSEG released on Friday.
“A lot of people are worried about things like tariffs … Really, it’s a broad economic slowdown that is the one thing that would be very difficult for companies to contend with,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.
Our Methodology
We combed Appaloosa Management LP’s SEC Q4 2024 13F filings to identify the top 10 growth stocks in Appaloosa Management LP’s portfolio. From the resultant data, we settled on the top 10 picks and analyzed them on why they stand out as growth picks. Finally, we ranked the stocks in ascending order based on the value of Appaloosa Management LP’s equity stakes while also detailing hedge fund sentiment around the stocks, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Top 10 Growth Stocks in David Tepper’s Portfolio
10. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Appaloosa Management LP’s Equity Stakes: $49.37 Million
Number of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest chip manufacturer, controlling about 60% of the market share in the multibillion-dollar sector. The company produces chips for chip giants, including Nvidia, AMD, and Apple. Likewise, it is one of the top growth stocks in Appaloosa Management LP’s portfolio, benefiting from the growth of artificial intelligence, the Internet of Things and high-performance computing applications.
Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) 90% market share in the production of sophisticated processors underscores its solid top-and bottom-line growth. In the fourth quarter, which concluded on December 31, revenue climbed 37% year-over-year to $26.8 billion, while EPS soared 57% to $2.24 per share.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) estimates AI sales will triple in 2025 as demand for AI chips remains strong. Tech behemoths like Meta Platforms, Microsoft, and others have already announced hundreds of billions of dollars in data center spending, so Taiwan Semiconductor’s growth prospects remain strong. The company expects its revenue to grow at a compound annual growth rate of 20% between 2024 and 2029. It also expects its growth margin to improve to 53%.
9. Uber Technologies, Inc. (NYSE:UBER)
Appaloosa Management LP’s Equity Stakes: $90.48 Million
Number of Hedge Fund Holders: 166
Uber Technologies, Inc. (NYSE:UBER) is a technology company that offers transportation and ride-sharing technology that allows passengers to book rides and drivers to charge fares and get paid via a smartphone app. While the stock has rallied by more than 1580% since 2022, the rally has come on the company delivering solid financial results that affirm underlying growth.
The ride-sharing giant delivered an 18% year-over-year increase in gross bookings to $44.2 billion as it completed 3.1 billion trips, and revenue grew by 20% to $12 billion in Q4 2024. Mobility and Delivery revenue combined increased by 23% year-over-year. Over the past five years, Uber Technologies, Inc. (NYSE:UBER) has grown its revenues at a compound annual growth rate of 28% as it benefits from strong growth in the mobility and delivery segments.
The robust revenue growth has also come on monthly active platform users, growing 14% year-over-year to 171 million. There are 30 million Uber One members, a 60% increase from the previous year. In addition to collaborating with Delta Air Lines as its exclusive ride-share and delivery partner in the United States, it’s begun operating a fleet of autonomous vehicles for food delivery in Texas, strengthening its growth prospects.